Everyone wants to grow their existing wealth to take better care of their family and fulfill their life goals. In this constantly changing world, saving funds and managing emergency savings is extremely crucial. Fortunately, there is an easy way to increase your monetary worth and fulfill your financial requirements – investing in a reliable saving plan.
There are several savings schemes offered by banks, financial bodies, and governments that encourage people to invest and earn gold returns. However, before you invest your hard-earned money in a financial instrument, you must conduct a thorough research about the merits and demerits of your preferred scheme.
To make the process easier, here’s a list of various savings schemes available in India:
National Savings Certificate
Being a fixed income saving plan, the national savings certificate is a highly accessible scheme that can be purchased from your nearest post office. The plan is initiated by the Government of India with the agenda of helping households with small- and medium levels of income.
This plan also offers tax-saving benefits under section 80C of the Income Tax Act. If you’re looking for a low-risk savings scheme with fixed returns, this is surely a good option for you.
Senior Citizen Savings Scheme
The senior citizen savings scheme is a completely safe financial investment that offers you a regular income, along with amazing tax-saving benefits too. When you retire, you may hesitate from investing in equity as they involve a significant amount of risk.
On the other hand, while some schemes may not be risky, they don’t offer regular income. That’s why a senior citizen savings scheme is ideal for older people looking for a risk-free investment opportunity with tax-saving benefits.
It can be easily availed through your nearest post office and banks all over India. However, you need to be at least 60 years old to be eligible for investing in this scheme.
Abbreviated as RD, a recurring deposit is a term deposit plan provided by banks. It’s a good plan for people who can make regular deposits to receive a huge corpus of money at the time of maturity of this policy.
You can also choose your preferred term period in addition to the number of monthly deposits and the amount as per your requirements and financial goals. To start a recurring deposit through your bank, you need to have a minimum amount of Rs. 500.
The interest that you gain through this investment varies from bank to bank, and it’s also prone to market volatility. On the other hand, if you start a recurring deposit through the post office, you’d need to have a minimum amount of Rs. 10, and it’ll offer you a fixed interest rate of 8.4%.
Public Provident Fund
Introduced by National Savings Institute as a government-backed savings scheme, the public provident fund is considered as one of the safest and most reliable savings schemes in India. The corpus of money you accumulate using this scheme is completely free from taxes as per the income tax act of India.
It offers an annual interest rate of 7.6%, and the minimum contribution required is Rs. 500 that can go as high as Rs. 1.5 Lakhs during the financial year. The benefits will be paid off in lump-sum form or you can choose to receive up to 12 deposits every financial year.
This investment scheme is also considered very flexible as you can easily transfer it from one financial body to another.
Employee Provident Fund
The Employee Provident Fund is also a government-initiated savings scheme, introduced by the Employee Provident Fund Organization. It requires individuals with a salaried job to make financial contributions towards their provident fund account to plan for their retirement efficiently.
With this scheme, you can fulfill your financial objectives in life and deal with any kind of uncertainty in the future. The savings will grow at an interest rate of 8-12%, based on the company, and the money will be credited to your account on 1st April of every financial year.
Atal Pension Yojna
Being yet another government-initiated savings scheme, this investment opportunity is designed for the welfare and betterment of the weaker section of the society. It is ideal for individuals working in unreliable and unorganized sectors and require some kind of financial support to back their monetary requirements for the future.
It acts as a very lucrative opportunity to plan for your post-retirement days. The rate of premiums is very low and the minimum age to apply for this scheme is 18 years.
Canara HSBC OBC Invest 4G Plan
The Canara HSBC OBC Invest 4G is a unit-linked savings plan that also provides you coverage for your whole life. This plan offers various customization features that can be used to modify the plan as per your requirements and financial goals.
It offers you a wide range of portfolio management options along with great flexibility that provides you an all-around control over both your insurance and savings needs. Furthermore, as it is a non-participating product, all the earnings through this investment will be given to you, without any concession.
With a regular savings plan, you can be prepared for all kinds of eventualities that may require financial abundance. Moreover, it also allows you to meet both your short-term and long-term financial objectives in your life.
By investing in small saving schemes and making consistent and disciplined contributions for a certain amount of time you can easily create a financial question for the betterment of the future of you and your loved ones. Therefore, make sure you check out the savings schemes given above and choose the one that fits the bill for you.
Hey, this is Johny Sehgal. I am the owner and caretaker at Finance Jungle. I completed my education in BSC and now heading towards the digital marketing industry. I usually have interests in reading, playing games and watching movies. I also love to write content based on quality information. The main motive of mine is to provide the top and best quality information to my readers. Finance Jungle is the blog for the same.